Toyota to replace Daihatsu in developing compact cars for Southeast Asia

In the meantime, Daihatsu will be in charge of developing mini vehicles, or kei cars, in Japan.

0
43

In the wake of Daihatsu’s safety certification scandal that rocked the automotive industry and made headlines in 2023, the Toyota group has effected a restructuring plan in the wake of its subsidiary’s misconduct.

On April 8, 2024, Daihatsu announced that its parent company Toyota will assume responsibility for development and certification of small vehicles in emerging markets including Southeast Asia, while Toyota will entrust the actual development work to Daihatsu.

Toyota to Develop Small Cars for Southeast Asia, Replacing Daihatsu

In an effort to restore trust, Daihatsu will alleviate excessive burdens on workers and place greater emphasis on product safety. Previously, the increasing number of models and export markets had placed strain on workers, leading to the falsification of tests.

Under the new system, Toyota will strengthen oversight at each stage of the production process up to certification. This will be applied initially to models undergoing a model change. Meanwhile, Daihatsu will take charge of developing minivehicles, known as kei cars, in Japan.

The move follows the appointment of a new Toyota president who took the helm at Daihatsu a little over a month ago, inheriting the task of restoring the minivehicle maker to growth. The automaker has also disbanded Emerging-Market Compact Car Company (ECC), which until now served as an intermediary between Toyota and Daihatsu.

President Masahiro Inoue said that Toyota will also handle management and resource optimization related to Daihatsu’s business and product planning. According to Inoue, Daihatsu aims to pursue the challenge of launching a pure electric kei car with a smaller body and a lower output than regular cars. However, Daihatsu has yet to announce a timeframe for the vehicle’s debut.

Toyota’s domestic sales plunged by a third in February 2024 due to a suspension of Daihatsu production and reputational damage in the wake of its safety certification scandal. The world’s best-selling automaker in 2023 has also grappled with separate governance issues at truck maker Hino Motors and group company Toyota Industries.

Scandals at the three companies prompted Toyota President Akio Toyoda to issue a rare apology in January 2024. Daihatsu accounted for about 4% of the Toyota group’s total sales of 1.6 million vehicles in the first two months of the year, including Lexus and Hino Motors, down from about 3% for the full year of 2023.

You may also like

Toyota and Lexus Cars Equipped with Standard Automatic Braking System Since 2017

Toyota and Lexus are set to introduce automatic braking systems as a standard feature on almost all of their vehicle models by the end of 2017, which is four years ahead of the recent requirement by the National Highway Traffic Safety Administration (NHTSA) in the United States.

Ford and Toyota collaborate to develop car applications

Ford and Toyota have recently announced their partnership to establish a new joint alliance aimed at focusing on building and developing automotive applications.

STORIES ABOUT 3 JAPANESE LUXURY CAR BRANDS (PART 2)

In the 1970s and 1980s, the idea of “luxury Japanese cars” was still unfamiliar to Americans. However, just a decade later, Americans had to change their perception of manufacturers from the “land of the rising sun.”

Forbes: VinFast is a prime example of emerging companies aiming for global expansion.

According to Forbes, the Vietnamese business community, exemplified by VinFast’s successful listing on the US stock market, construction of a factory in North Carolina, and opening of stores in Europe, is becoming a dynamic model for global businesses from Southeast Asia.